Question

Analyze the Average Collection Period Based on the table

Average Collection Period	2017	2018	2019
Kilroy Realty Corporation	124d	130d	147d
Cushman & Wakefield	4d	2d	4d
Progressive Real Estate	10d	7d	6d

Analyze the Fixed Asset Turnover based on the table

Fixed Asset Turnover	2017	2018	2019
Kilroy Realty Corporation	5.7	4.5	8.1
Cushman & Wakefield	1.2	1.3	1.2
Progressive Real Estate	1.2	1.1	1.1

Analyze Debt to Asset Ratio based on the table

Debt to Asset Ratio	2017	2018	2019
Kilroy Realty Corporation	34.50%	37.76%	39.92%
Cushman & Wakefield	49.04%	51.67%	37.13%
Progressive Real Estate	8.54%	9.46%	8.03%

Answer 1

1) Average Receivables= (Account Receivables/ (Net Sales/365))

The average collection period is the average number of days between the dates that credit sales were made, and the dates that the money was received/collected from the customers.

The average collection period is also referred to as the days' sales in accounts receivable.

Lower the Average Collection period it is good for the company as it will have proper working capital.

Thus looking at the numbers wecan see that Cushman & Wakefield is doing great in terms of average collection period and Kilroy Realty Corporation is doing worst in it the maximum it has is in 2019.

2) Fixed Asset Turn over Ratio

The fixed asset turnover ratio is an efficiency ratio calculated by dividing a company's net sales by its Fixed Assets (property, plant, and equipment - depreciation).

It measures how well a company generates sales from its Fixed Assets.

Higher the fixed asset turnover ratio better is the company

Thus analysing the numbers that are given we have Kilroy Realty Corporation having maximum fixed asset turnover ratio as comoared with the competitors mentioned

Progressive Real Estate having lowest fixed asset turn over ratio among competitors .

3) Debt to asset Ratio

The debt to asset ratio, or total debt to total assets, measures a company's assets that are financed by liabilities, or debts, rather than its equity

This ratio can be used to measure a company's growth through its acquired assets over time.

A lower debt-to-asset ratio suggests a stronger financial structure, just as a higher debt-to-asset ratio suggests higher risk.

Thus from the table given we have Cushman & Wakefield having maximum debt to asset ratio throughout and Progressive Real Estate with lower ratio thus Progressive Real Estate is doing goods as compared to its competitors